When inflation rises, people make
A)less frequent trips to the bank and firms make less frequent price changes.
B)less frequent trips to the bank while firms make more frequent price changes.
C)more frequent trips to the bank while firms make less frequent price changes.
D)more frequent trips to the bank and firms make more frequent price changes.

Question

Quizplus · Accepted Answer

When inflation rises, individuals often need to withdraw money more frequently to keep up with increasing prices, and firms adjust prices more frequently to maintain their profit margins and keep pace with the cost of inputs.

When Inflation Rises, People Make